Market watch: International energy futures prices climb

Energy futures prices continued to climb in international markets Thursday, moved mainly by a bullish outlook for US stocks of unleaded gasoline and heating oil. The October contract for benchmark US light, sweet crudes increased by 63¢ to $27.58/bbl.

Sept. 7, 2001

2 min read

By the OGJ Online Staff

HOUSTON, Sept. 7 -- Energy futures prices continued to climb in international markets Thursday, moved mainly by a bullish outlook for US stocks of unleaded gasoline and heating oil.

The American Petroleum Institute late Wednesday reported lower weekly inventories of both refined products.

The October contract for benchmark US light, sweet crudes increased by 63¢ to $27.58/bbl Thursday on the New York Mercantile Exchange, while the November contract was up 54¢ to $27.67/bbl. However, both contracts retreated in after-hours electronic trading to $27.48/bbl and $27.60/bbl, respectively.

Unleaded gasoline for October delivery gained 1.96¢ to 80.79¢/gal. Home heating oil for the same month moved up 1.61¢ to 78.32¢/gal on the NYMEX.

The October natural gas contract also inched up 2¢ to $2.44/Mcf. But industry analysts expect more price declines in that market.

"It appears ever more likely that natural gas storage will exceed any prior historical level entering this winter, and absent a record cold winter or a sharp rebound in the economy, the large year-over-year surplus is likely to still exist or to have expanded by next spring," said Robert S. Morris in a weekly report Thursday for Salomon Smith Barney Inc.

In London, the October contract for North Sea Brent crude rose 64¢ to $26.96/bbl on the International Petroleum Exchange. The October natural gas contract also inched up 0.4¢ to the equivalent of $3.01/Mcf on the IPE.

The average price for the Organization of Petroleum Exporting Countries' basket of seven crudes increased by 35¢ to $24.94/bbl Thursday.

Meanwhile, High Plains Corp. of Wichita, Kan., one of the largest US producers of ethanol, said Thursday its recently expanded ethanol production facility in York, Neb., is running in a start-up phase.

Improvements to that plant will increase its production capacity by a third to 50 million gal/year, while reducing its natural gas use. It should reach that new production level by Oct. 1, officials said.

Ethanol is a gasoline additive used to reduce pollution in some reformulated gasoline.